China Business Opportunity Symposium Review - Shang-Dao
China Business Opportunity Symposium Review - Shang-Dao
China Business Opportunity Symposium Review - Shang-Dao
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Organizer<br />
Strategy Partner<br />
<strong>China</strong><br />
<strong>Business</strong><br />
<strong>Opportunity</strong><br />
<strong>Symposium</strong><br />
21 January 2008<br />
Geneva, Switzerland<br />
<strong>Review</strong><br />
Chinese Companies<br />
Becoming Global Players:<br />
Strategies for Success
CBO<br />
As one of the most influential emerging markets,<br />
<strong>China</strong> has changed, is changing and will continue to<br />
change the global economic landscape. This is the<br />
explicit message that <strong>China</strong> has sent to the world.<br />
Chinese companies are expanding their activities<br />
and several are expected to join the ranks of global<br />
multinationals in the next 5 to 10 years. The Chinese<br />
market is highly competitive for all market players,<br />
both national and international.<br />
As preamble to the World Economic Forum Annual<br />
Meeting 2008, the first <strong>China</strong> <strong>Business</strong> <strong>Opportunity</strong><br />
<strong>Symposium</strong> provided a platform for current and<br />
future companies to share best practices and what<br />
they consider to be the key ingredients of success<br />
for growth.<br />
Held in the beautiful city of Geneva, Switzerland, the<br />
CBO <strong>Symposium</strong> has proven itself to be a unique<br />
experience of sharing and networking. Close to<br />
100 guests from government, business leaders,<br />
and academic visionaries discussed hot topics that<br />
included:“Going Public”, “Founding partnerships”,<br />
and “Being local as a global player”.<br />
This <strong>Review</strong> provides highlights from the CBO<br />
<strong>Symposium</strong>. We look forward to seeing you at the<br />
next CBO <strong>Symposium</strong>.<br />
Best regards<br />
<strong>Shang</strong>-<strong>Dao</strong>
Programme overview<br />
08:00 – 09:00 Registration<br />
09:00 – 09:30 Opening and Welcome Address<br />
Mr. Pierre-Francois Unger, Minister of Economy and Health,<br />
Republic and State of Geneva<br />
H.E. Bangzhao Zhu, Ambassador Extraordinary & Plenipotentiary of People’s<br />
Republic of <strong>China</strong> to Switzerland<br />
Mr. Hein Verbruggen, IOC Member and Chairman of the Coordination Commission<br />
for the Games of the XXIX Olympiad - Beijing 2008<br />
Mr. Houlin Zhao, Deputy Secretary-General,<br />
International Telecommunication Union<br />
Mr. Joseph Deiss, Former President of Switzerland<br />
Chairperson Ms. Isabel Shuping Mu, President, <strong>Shang</strong>-<strong>Dao</strong><br />
09:30 – 10:45 Financial Services – How to Take your Company Public<br />
Keynote Dr. Martin Steinbach, Head Listing, Deutsche Börse AG<br />
Speakers How to Launch a Successful Listing on International Stock Exchanges<br />
Mr. Jia Liu, Chairman, Jiamei Dental Group, <strong>China</strong> Medical Industry & IPO<br />
Chairperson Dr. Volker Fitzner, Partner and Head Public Listing, PwC Germany<br />
10:45 – 11:15 Networking Break<br />
11:15 – 12:15 Industry – How to Perform a Successful Transaction<br />
Keynote Mr. Jun Feng, CEO, Huaqi (Aigo) Information Digital Technology<br />
Speakers Mr. Jean-Luc Favre, Group Vice President, ABB<br />
Mr. Wei Wang, President, Sinoma<br />
Chairperson Dr. Ralf C. Schlaepfer, Partner and Leader <strong>China</strong> <strong>Business</strong> Group, PwC Switzerland<br />
12:15 – 14:00 Networking Lunch<br />
Guest Speaker Mr. Steve Bernard, Director, Geneva Financial Center<br />
14:00 – 15:00 How to Establish a Partnership Between <strong>China</strong> and Europe<br />
Keynote Mr. Zhengmao Li, Vice President, <strong>China</strong> Unicom<br />
Speakers Mr. Josef Müller, Former Head of Nestlé in Greater <strong>China</strong> Region<br />
Chairperson Mr. Nikolaus Thoens, Partner and Head Asia Tax Group, PwC Germany.<br />
15:00 – 16:00 How to Create Global <strong>Business</strong>es – and still be local as a global player<br />
Keynote Mr. Simon Liang, Chairman & CEO, Sinopacific Shipbuilding Group<br />
Speakers Mr. Juan Carlos Torres, CEO, Vacheron Constantin<br />
Chairperson Mr. David P. Frick, Member Executive Board, Nestlé.<br />
16:00 – 16:30 Networking Break<br />
16:30 – 17:30 “Take Away” Best Practices<br />
- How to set up a successful business in <strong>China</strong><br />
- What are the key success drivers in the Chinese market?<br />
- How to gain and maintain market share in <strong>China</strong><br />
- How will Chinese companies remain competitive in the future?<br />
- How can Chinese entrepreneurs become successful on a global level?<br />
- What can Chinese companies learn from successful IPOs?<br />
Chairperson Dr. Ralf C. Schlaepfer, Partner and Leader <strong>China</strong> <strong>Business</strong> Group, PwC Switzerland<br />
17:30 – 17:45 Closing Speech<br />
Mr. Donghua Liu, President, <strong>China</strong> Entrepreneur Magazine<br />
19:00 – 22:30 Gala Dinner
VIP Welcome Address<br />
Isabel Shuping Mu<br />
President,<br />
<strong>Shang</strong>-<strong>Dao</strong><br />
It is a great pleasure and an honour for me to welcome<br />
you to the first <strong>China</strong> <strong>Business</strong> <strong>Opportunity</strong> <strong>Symposium</strong> – a<br />
unique and privileged platform where sharing your successful<br />
experiences in dealing with <strong>China</strong>-related businesses may<br />
lead to the formation of strategic alliances and possible<br />
partnerships.<br />
Today we have great speakers and great participants. But, first of<br />
all, I would like to say a big thank you to the Chinese delegations.<br />
My very warm thanks also go to our partners. Their valuable<br />
support was one of the key elements to make this CBO possible.<br />
Furthermore, it must be stated that the Swiss authorities and the<br />
Chinese Embassy have given the CBO <strong>Symposium</strong> enormous<br />
encouragement and support.<br />
Mr. Pierre-Francois Unger<br />
Minister of Economy and Healthy<br />
Republic and State of Geneva<br />
Networking, innovation-sharing, participation of civil society<br />
- Geneva is the laboratory for an exceptional and unique<br />
gathering. The holding of this “<strong>China</strong> <strong>Business</strong> <strong>Opportunity</strong><br />
<strong>Symposium</strong>” contributes to the strengthening of Geneva’s<br />
traditional role: to bring people together!<br />
This day of discussion is an occasion to create as many opportunities<br />
as possible to network business people from<br />
<strong>China</strong> and all over the globe, to establish new commercial<br />
links and partnerships and to encourage innovation-sharing.<br />
Geneva, for all these reasons, is an ideal platform for such<br />
a meeting. It can, of course, count on the strengths of its<br />
international and cosmopolitan environment: an environment<br />
in which the Chinese community enjoys a place of<br />
choice, in particular because it is larger in Geneva than in<br />
any other part of Switzerland. Owing to its history, Geneva<br />
is naturally at the crossroads of constant first-rate economic,<br />
diplomatic and cultural exchanges. Therefore it is evidently<br />
a setting that is a favourable one in which to hold the first<br />
event of this “<strong>China</strong> <strong>Business</strong> <strong>Opportunity</strong> <strong>Symposium</strong>”. We<br />
wish the symposium a long life and every success!<br />
H.E. Bangzhao Zhu<br />
Ambassador Extraordinary & Plenipotentiary<br />
of People’s Republic of <strong>China</strong> to Switzerland<br />
With its rapid economic growth, <strong>China</strong> has become the<br />
biggest emerging market in terms of volume and potential.<br />
This has brought not only the tremendous business opportunities<br />
and profits for global multinational companies,<br />
but also the solid growth for Chinese enterprises. In recent<br />
years, Chinese enterprises have been increasingly strengthening<br />
the “Go-Out” strategy and broadening the foreign investment<br />
fields further, while relying on the home market<br />
as the backing bone. At present, <strong>China</strong>’s foreign investment<br />
and cooperative business already spread in nearly 200<br />
countries and regions over the globe. This puts into shape<br />
of a diversified market pattern: focus on Asia, seek development<br />
in Africa, and expand in Europe, USA, Latin America<br />
and South Pacific.<br />
In August <strong>China</strong> will welcome the 29th Olympics Games.<br />
I believe that the successful holding of Beijing Olympic<br />
Games will not only help the world to better understand<br />
<strong>China</strong>, but also certainly bring more opportunities to<br />
strengthen the communication and cooperation between<br />
<strong>China</strong> and other countries’ enterprises.<br />
I hope that the Chinese and Swiss entrepreneurs present<br />
can take full advantage of the <strong>China</strong> <strong>Business</strong> <strong>Opportunity</strong><br />
<strong>Symposium</strong> as a platform of deepening the association and<br />
cooperation, while contributing to the further development<br />
of the Sino-Swiss friendly relationship.
Mr. Hein Verbruggen<br />
Chairman of the Coordinaton Commission for the Games<br />
of the XXIX Olympiad-Beijing 2008<br />
The Beijing Olympic Games are a fantastic opportunity for <strong>China</strong><br />
to welcome the world and build cultural bridges. They have<br />
also become a significant boost for the economy of the host<br />
city and region. In many respects, the Olympic Games in Beijing<br />
stand as a shining example for the rest of <strong>China</strong>, a country<br />
experiencing fast urban growth with significant environmental<br />
challenges. A lot can be learnt and will be learnt in <strong>China</strong> from<br />
preparing and hosting the Games.<br />
However, we have to be realistic: the Olympic Games in Beijing<br />
cannot solve all problems <strong>China</strong> is facing today. But they will help.<br />
They are indeed a modest but significant contribution to <strong>China</strong>’s<br />
integration in the global community and economy. The Games<br />
in Beijing are more than just a major event; they will be a lasting<br />
legacy for <strong>China</strong> and the Chinese people. Millions of young children<br />
across the country will be inspired by the Olympic messages<br />
and values..<br />
Mr. Houlin Zhao<br />
Deputy Secretary-General<br />
International Telecommunication Union<br />
Surely, <strong>China</strong> has changed a lot. Among many reasons<br />
for the marvelous changes, <strong>China</strong>’s achievements are<br />
also benefited from foreign investment and foreign<br />
cooperation. Although <strong>China</strong>’s market has developed<br />
rapidly, and in many areas the Chinese market resembles<br />
European markets, there are still many opportunities for<br />
foreign investments in the Chinese market, particular<br />
in the high-tech industry. On the other hand, there are<br />
gaps between the eastern and western regions, as well as<br />
between the urban and suburban areas. There are many<br />
challenges to improve the situation in the west, and there<br />
are certainly many opportunities for businesses. As the<br />
investment environment in <strong>China</strong> has greatly improved<br />
over the last decade, to invest into the west of <strong>China</strong><br />
should be a win-win for both European businessmen and<br />
the Chinese people.<br />
With the WTO agreement, the Chinese market should be<br />
open to the foreign business partners. It should be equally<br />
true that foreign markets should be open to Chinese<br />
partners. I sincerely hope that more and more Chinese<br />
companies will become active in the global market.<br />
Prof. Dr. Joseph Deiss<br />
Former President of the Swiss Confederation<br />
Such broad progress needs to rely on strong leadership<br />
of the old and well established economies like those of<br />
the USA, Japan and Europe, but also on that of emerging<br />
economic and political power generated in particular by<br />
what we call the BRIC countries. Among those, you will have<br />
noticed, Europe and <strong>China</strong> play a decisive role. Therefore the<br />
question raised by this <strong>Symposium</strong> about how to establish<br />
a partnership between <strong>China</strong> and Europe is very timely. It<br />
is without a doubt that both entities are and will remain<br />
among the biggest and leading world economies and there<br />
is much benefit to win out of their intensified cooperation,<br />
both for themselves, as for the world as a whole.<br />
<strong>China</strong>’s reform and opening-up has greatly promoted<br />
its own economic development, but has also provided a<br />
huge market potential for foreign investors and producers.<br />
Europe has evolved into a large single market, increasing<br />
efficiency and competitiveness, and is also helping to<br />
create new wealth in Central and Eastern Europe. The big<br />
challenge now for both <strong>China</strong> and Europe is to intensify<br />
their economic exchanges and cooperation at all levels,<br />
and to overcome the still remaining important protectionist<br />
behaviours on both sides.
CBO Sessions<br />
FINANCIAL SERVICES<br />
HOW TO TAKE yOUR COMPANy PUBLIC<br />
Chairperon:<br />
Dr. Volker Fitzner<br />
Partner and Head Public Listing<br />
PwC Germany<br />
Keynote Speaker:<br />
Dr. Martin Steinbach<br />
Head Listing<br />
Deutsche Börse AG<br />
The success factors for each company are different.<br />
There are two questions to be considered: 1. what is the<br />
best way to execute the IPO process, which IPO partners<br />
to choose from investment banking; 2. what is the best<br />
exchange to list. There are 7 criteria to analyze the<br />
exchange listing for the IPO: 1.Balanced regulation and<br />
market credibility: companies choice through tailormade<br />
access. 2.Better regulation and high reputation<br />
from well-know peer groups. 3.Fastest listing process<br />
and unparalleled service portfolio. 4.Lowest fees and<br />
cost of capital. 5.Unsurpassed liquidity and global<br />
investor reach. 6.High visibility and investor awareness<br />
indices. 7.Expertise of international partners.<br />
Deutsche Börse Offers Companies:<br />
Simple and cost efficient capital market access<br />
-Entry Standard, General Standard and Prime Standard<br />
offer low admission and listing<br />
- fees and the fastest admission process worldwide<br />
-High market integrity and credibility enhance investor<br />
transparency and confidence<br />
-Access to global investors by electronic network in<br />
modern primary market<br />
Peer group visibility and low cost of capital<br />
-Large and reputable peer group with listing alongside<br />
global brands<br />
-Selection/sector indices and unique media visibility<br />
enhance investor awareness<br />
-Lowest cost of capital and positive primary market<br />
sentiment<br />
Professional guidance and support<br />
-I-POint: diverse information and assistance products for<br />
issuers and candidates<br />
-Deutsche Börse Listing Partner: financial markets<br />
experts<br />
-Expert: native speaker and sector key account within<br />
Issuer & Investor Markets<br />
Keynote Speaker:<br />
Mr. Jia Liu<br />
Chairman<br />
Jiamei Dental Group<br />
<strong>China</strong> Medical<br />
Industry & IPO<br />
First of all, we would like to owe the first round of<br />
successful financing to Chinese government, because, in<br />
addition to market and profitability, a good investment<br />
environment is also indispensable for companies to<br />
prosper. For an enterprise like Jiamei, fund is not the only<br />
thing we need. Our ideal is to combine the traditional<br />
industry with international capital to enter into the<br />
global market. We need the western world to give us<br />
more valuable experience and expertise. For example,<br />
the helps and guides from PwC in our development<br />
are very important. <strong>China</strong>’s domestic banks don’t have<br />
so much experience in listing overseas. So PwC has<br />
contributed a lot to our success of listing overseas.<br />
We have completed the legal structure of our company<br />
recently. In three or four months, we will proceed the<br />
second round financing for around USD 40 million. Large<br />
investment companies are helping us to explore how to<br />
carry out acquisition with the second round funds and<br />
go to the international capital market smoothly. At the<br />
moment, establishing business and generating benefits<br />
are not problem to us. The problem we are facing is<br />
still the lack of management competence and force. It<br />
is possible to streamline the product and standardize<br />
the service, but not to people. So we must establish<br />
unified technology, mindset and quality. We know that<br />
human capital is very scarce and people management<br />
is very demanding. In order to solve this bottle-neck<br />
eventually, we plan to establish three stomatology<br />
hospitals and cooperate with universities from USA,<br />
Europe and Japan.<br />
Conformity to international standard is a key issue and<br />
high concern for the investors in case of listing in future.<br />
What we are doing now is not to list merely for the sake<br />
of listing. What is more significant lies in the fact that<br />
<strong>China</strong> needs its own brands.
INDUSTRy<br />
HOW TO PERFORM A SUCCESSFUL TRANSACTION<br />
Chairperon:<br />
Dr. Ralf C. Schlaepfer<br />
Partner and Leader <strong>China</strong> <strong>Business</strong> Group<br />
PwC Switzerland<br />
Keynote Speaker:<br />
Mr. Jun Feng<br />
CEO<br />
Huaqi (Aigo) Information<br />
Digital Technology<br />
Keynote Speaker:<br />
Mr. Jean-Luc Favre<br />
Group Vice President<br />
ABB<br />
Keynote Speaker:<br />
Mr. Wei Wang<br />
President<br />
Sinoma<br />
We create a secret, a formula. This is the key for Aigo<br />
to perform successful international transactions, to<br />
cooperate with partners from all over the world and to do<br />
R&D in many fields. This formula is “1 plus 1 equals 11”.<br />
This formula focuses on creating new value. When you<br />
create new value, you can share it with your partners, with<br />
your friends, and with society. It helps lead to harmonic<br />
VALUE CHANGE and ongoing GROWTH.<br />
Aigo focuses on R&D and branding. Customers all over the<br />
world need high-quality, trouble-free products. Our target<br />
is to use R&D and branding to make every consumer<br />
happy with our fine quality and trouble-free service.<br />
We began our business 15 years ago with only $26 that my<br />
mother gave me. Gradually, we have evolved into today’s<br />
Aigo, thanks to this “1 plus 1 equal<br />
ABB is organised worldwide in five divisions and all these<br />
divisions are active in <strong>China</strong> today because <strong>China</strong> is an<br />
important market where the ABB’s division portfolio<br />
is supporting the country development. In 1994, ABB<br />
moved its <strong>China</strong> headquarter to Beijing and established<br />
ABB <strong>China</strong> Ltd. Today, the company has more than 8’500<br />
employees with more than 25 joint ventures and wholly<br />
owned companies in <strong>China</strong>.<br />
ABB was recently successful in <strong>China</strong> by setting up a joint<br />
venture in 2006 for traction transformers manufacturing<br />
in Datong, northwest of Beijing with Datong Electric<br />
Locomotive Corporation (DELC) which was founded<br />
in 1954. The total number of DELC employees is more<br />
than 7000, with 2000 technical staff. The Company has<br />
a long working relationship with more than 30 research<br />
institutions, technical colleges and MNC’s that are either<br />
domestic or overseas. The JV Company is manufacturing<br />
traction transformers designed by the ABB Centre of<br />
In recent years, the scope of Sino-European cooperation<br />
has been expanding continuously, and bilateral political,<br />
economic, technological and cultural relations have<br />
been developing steadily. Currently the labor-intensive<br />
products still have a considerable proportion in main<br />
items exported to Europe. However, as the international<br />
competitiveness of Chinese enterprises is enhanced,<br />
Sino-European trade has gradually transformed from<br />
unilateral technology and equipment export to bilateral<br />
export. Chinese enterprises should analyze the European<br />
enterprises’ market demand during the transformation<br />
and build a new partnership between <strong>China</strong> and Europe<br />
through technical and business mode innovation.<br />
Sinoma international has rapidly expanded into the<br />
European market in recent years. The trading partnership<br />
between the company and European cement companies<br />
can be divided into two categories. One is Sinoma<br />
International, which provides system integrated services<br />
11 formula”. Take, for example, the Aigo pen. This<br />
product integrates our technology in IT industry with the<br />
watermarking patent to create a completely new product.<br />
Now the Aigo pen is being displayed in the Olympic<br />
museum and will help to spread the Olympic spirit.<br />
Excellence and worldwide market leader for this product<br />
line, ABB Secheron Ltd located in Geneva.<br />
In order to make a successful transaction, the market has to<br />
be understood. you need to know the business potential<br />
and organization, to know also who the key players are and<br />
who the decision makers are, and to connect with each<br />
other. Leadership in technology and quality plays a very<br />
important role here because the Chinese partners want<br />
to cooperate with leading companies. Local support from<br />
ABB organisation in terms of legal aspects, manufacturing<br />
and suppliers is available because ABB has more than 25<br />
Companies running in <strong>China</strong>. This was also a key factor for<br />
us to succeed in <strong>China</strong>.<br />
To conclude, COMMUNICATION and UNDERSTANDING are<br />
the key issues to make a successful transaction.<br />
for European cement companies in Europe directly. The<br />
technical level and business mode play a key role in this<br />
trading partnership. The technology and equipment<br />
with independent intellectual property right of Sinoma<br />
International account for more than 75% in European<br />
projects.<br />
The second category is European cement companies<br />
investing in regions outside the Europe, and Sinoma<br />
International offers them system integrated services. The<br />
relation between Sinoma International and European<br />
companies is close to a strategic partnership.<br />
The above-mentioned is the experience we have in<br />
building a Sino-European trading partnership. And we<br />
believe that Sino-European enterprises will bring creativity<br />
into full play, form mutually-beneficial trading partnerships<br />
in more fields, and take Sino-European relations to a new<br />
stage of development.
CBO Sessions<br />
Keynote Speaker:<br />
Dr. Zhengmao Li<br />
Vice President<br />
<strong>China</strong> Unicom<br />
HOW TO ESTABLISH A PARTNERSHIP<br />
BETWEEN CHINA AND EUROPE<br />
Chairperon:<br />
Mr. Nikolaus Thoens<br />
Partner and Head Asia Tax Group<br />
PwC Germany<br />
In <strong>China</strong> there is an old saying: Friendship first, business<br />
second. If you want to establish a partnership, the first<br />
thing is to establish friendship. Friendship is the basis<br />
for partnership. This is the general way to create a<br />
partnership.<br />
A lot of foreigners have been eager to invest in <strong>China</strong><br />
because <strong>China</strong> is a huge potential emerging market.<br />
European investors are different from American<br />
investors. European investors focus more on the value<br />
of a company, the historic value, business value, and<br />
the good financial data of a company. We have very<br />
good investors from Europe, such as UK, Germany<br />
and Switzerland. We find that the US investor is more<br />
concerned about the growth rate because <strong>China</strong> is an<br />
emerging market, which should mean faster growth.<br />
They expect a high growth rate. They are eager to be part<br />
of our growth story. In addition to that, they encourage<br />
the management to do something that can increase<br />
market share and value, and make fast return to the<br />
investors. We can not always follow what the investors<br />
tell us to do because we , as management, seek to have<br />
sustainable growth, not simply good performance in the<br />
short term. We established a strategic partnership with<br />
a leading South Korea cellular operation company two<br />
years ago. With similar culture and oriental history, we<br />
understand each other quite easily. However, we are still<br />
expecting strategic partners from Europe and the US.<br />
Keynote Speaker:<br />
Mr. Josef Müller<br />
Former Head of<br />
Nestlé in Greater<br />
<strong>China</strong> Region<br />
Coming to <strong>China</strong>, my observation from my humble years<br />
of experience, is that foreigners usually come for brief<br />
visits to <strong>China</strong>. They return home and are very excited<br />
about <strong>China</strong>, especially if it was their first, second time<br />
there. I think that type of “initial” excitement differs from<br />
the excitement of the new things we’re experiencing in<br />
<strong>China</strong> today. I feel the difference lies in the magnitude,<br />
the size, the diversity and the speed by which things<br />
are developing. This is just unprecedented. It is the<br />
combination of these elements combined with today’s<br />
technology that makes <strong>China</strong> a truly unique experience.<br />
We should respect the diversity in <strong>China</strong>. It is not one<br />
market. It is a cluster of many markets. My view is that<br />
<strong>China</strong> as an emerging market will last. It is again taking<br />
on a leading role, as it had earlier in history. However,<br />
gradually taking on this leadership position is not<br />
going to be smooth and problem free. If one wishes to<br />
conduct business well in <strong>China</strong>, information needs to<br />
be rapidly collected and rapidly converted into relevant<br />
knowledge as well as prompt action, and best practice<br />
needs to be adapted and implemented to match the<br />
reality in <strong>China</strong>.<br />
With regards to partners, we must seek those who<br />
add value. Race, culture or language should not affect<br />
our choice of business partner. The relationship with<br />
out partners needs to be based on mutual trust and<br />
respect, and have a sound business foundation. .There<br />
are problems in <strong>China</strong>, but there are many more<br />
opportunities. If each problem can provide many<br />
opportunities, it becomes a pleasure to try to find<br />
solutions.
HOW TO CREATE GLOBAL BUSINESS--<br />
AND STILL BE LOCAL AS A GLOBAL PLAyER<br />
Chairperon:<br />
Mr. David P. Frick<br />
Member Executive Board<br />
Nestlé<br />
Keynote Speaker:<br />
Mr. Simon Liang<br />
Chairman & CEO<br />
Sinopacific<br />
Shipbuilding Group<br />
In order to succeed in <strong>China</strong>, we should first understand<br />
<strong>China</strong>. People call us global entrepreneur, but I always<br />
consider local governments to be the real entrepreneurs.<br />
They are very dynamic, they work for the local city<br />
development, they push and try to find entrepreneurs<br />
like us and work together. Without their support, <strong>China</strong><br />
could never be like it is today.<br />
Another thing is to understand the cultural difference.<br />
For example, when working with different distributors<br />
from the USA, France, Germany, we adapt our way of<br />
working according to their company culture. Internally<br />
we have separated markets into industrialized countries,<br />
developing countries and Latin countries. We just adapt.<br />
And when we go to the international market, we do the<br />
same thing.<br />
Chinese culture is indirect and flexible. Chinese people<br />
are kind of individualist. They could be seen as a<br />
“monkey culture”: individually, each Chinese is very<br />
strong. If you go to the managers in <strong>China</strong>, you should<br />
really understand that. you should give them a clear KPI<br />
and objectives and allow them the space to fulfill it.<br />
Another cultural difference is what I would call<br />
“friendship, reason & law”. When doing business,<br />
friendship always comes first, then comes reason,<br />
followed by law. Of course, <strong>China</strong> is improving and<br />
changing day by day. yet friendship will always play a<br />
very important role in Chinese people’s social behavior.<br />
<strong>China</strong> is very big and in itself multicultural, with 56<br />
minorities to manage. Even for us as Chinese, when<br />
we go to different cities, we have to adapt to different<br />
local cultures. If you want to accomplish something,<br />
you should spend time there, understand, and nurture<br />
relationships. Today it is becoming easier and easier to<br />
do business as the rules are clearer and clearer<br />
<strong>China</strong> is a very promising market. There is a will from<br />
the Chinese government to create a consumption<br />
revolution—from forced savings/low consumption to<br />
forced consumptions/high growth. <strong>China</strong> has exhibited<br />
stunning growth recently and wants to paly an active<br />
role on the world’s stage. <strong>China</strong> is a difficult market to<br />
conquer: complex and heavy tax duties for imports,<br />
not one uniform market but lots of distinctive markets,<br />
insufficient infrastructure system, and an imprecise<br />
jurisdiction system.<br />
Many Chinese people enjoy visible symbols of social<br />
status. As a luxury brand we could not wish for a better<br />
customer base than this. The wealthy class is located in<br />
big cities and they want to catch-up fast with the rest<br />
of the world. That’s why <strong>China</strong> (incl. Hong Kong and<br />
Macau) accounts for almost 20% of the direct Swiss<br />
watch exports in value, with a 30% growth rate.<br />
How to succeed in <strong>China</strong>: We have a strong history<br />
and network. It is in a way very easy for us to find an<br />
explanation for this. Chinese people are very keen on<br />
their history and appreciation of high quality. If you are<br />
still there today, that means you have good products.<br />
Also, the PRC principle: Patience (be patient to succeed),<br />
Relationship (understand culture and adapt), Cash<br />
(because the Chinese market moves so fast, you need<br />
to invest to keep up).<br />
Our brand strategy: 1. Build-up an exclusive and very<br />
selective distribution network; 2. Develop retail network<br />
in order to educate clientele and promote Vacheron<br />
Constantin’s image of excellence (9 boutiques opened<br />
thusfar); 3. Open an authentic Vacheron Constantin<br />
Mansion in <strong>Shang</strong>hai in the summer of 2008.<br />
.<br />
Keynote Speaker:<br />
Mr. Marc Guten<br />
International Director<br />
Vacheron Constantin
CBO Sessions<br />
NETWORKING LUNCH SPEECH<br />
Switzerland is known for the quality of its financial industry,<br />
and Geneva is proud to be one of its strong regional centers.<br />
We are considered to be a world reference in the wealth<br />
management industry and in the commodity trade finance.<br />
With some 1’500 billion dollars of assets under management,<br />
Geneva counts among the big-league players, thanks to its<br />
500 years of experience, serving kings, emperors, republics,<br />
merchants, companies, governments, international<br />
organizations, and private citizens. Geneva provides an ideal<br />
platform for global actors looking for sound, independent<br />
and trans-national expertise.<br />
I am convinced that the business links between <strong>China</strong> and<br />
Geneva will strengthen in the future, because the Chinese and<br />
CLOSING SPEECH<br />
Mr. Donghua Liu<br />
President, <strong>China</strong> Entrepreneur Magazine<br />
As a matter of fact nobody in the world expected that <strong>China</strong><br />
would develop and flourish so fast. Neither Chinese themselves<br />
nor the world were ready for such a day that has come before<br />
all suddenly. Let me give a simple example, is manufacturing<br />
in <strong>China</strong> better or worse than 5 or 10 years ago in terms<br />
of Chinese products and services? The most prominent is that<br />
the world no longer believed in Made in <strong>China</strong>, Chinese products<br />
and services, in 2007, why is it so? Do Chinese products<br />
and services really have some big problems? Obviously not,<br />
the main reason is apparently the problem of information<br />
“asymmetry”. Information asymmetry may result in distrust<br />
and further in fear that may cause deformation in language<br />
and action.<br />
Who plays an important role for information symmetry? Certainly<br />
the politicians do. In the meantime, our media also assumes<br />
an important responsibility. And the value and role of<br />
our entrepreneurs are irreplaceable. As the commercial language<br />
is understandable all over the world, the success of<br />
Chinese commerce is to a great extent due to the introduction<br />
of such system as the market economy, while Chinese<br />
entrepreneurs being good students to learn from Western<br />
world since 30 years of reforming and opening up to the outside<br />
world. Certainly, as students we have to not only learn<br />
industriously but also apply creatively what we have learned.<br />
Moreover we have to do better than teachers in terms of what<br />
are not in place and make some improvements.<br />
Therefore, I think that the business leaders, no matter from<br />
Mr. Steve Bernard<br />
Director<br />
Geneva Financial Center<br />
the Swiss people share many common values, such as respect<br />
for hard work and for tradition, combined with openness<br />
to technology. We also share a strong desire to provide<br />
our people with a good living environment. The Chinese<br />
President, Mr Hu Jintao, recently reiterated the importance<br />
of a “HARMONIOUS SOCIETy”, and Geneva is consistently in<br />
the top ranking of the best international cities for the quality<br />
of life.<br />
When asked what he thought of the French Revolution, former<br />
Prime Minister Zhou En Lai, replied: “It is too early to tell”. I<br />
believe that if he was asked what he thought of the <strong>China</strong><br />
<strong>Business</strong> <strong>Opportunity</strong> <strong>Symposium</strong>, he would say: “Certainly<br />
an intelligent initiative to bring together the creativity and<br />
experience of two proud people”.<br />
<strong>China</strong> or Switzerland, USA, or other western countries, should<br />
be more trustworthy to people and create wealth jointly<br />
through information symmetry between <strong>China</strong> and Western<br />
world. I think this is our commercial world’s irreplaceable responsibility.
CBO Partners<br />
STRATEGy PARTNER<br />
PricewaterhouseCoopers provides industryfocused<br />
assurance, tax and advisory services<br />
to build public trust and enhance value for its<br />
clients and their stakeholders. We have more than<br />
130,000 people in 148 countries working together<br />
collaboratively to develop fresh perspectives and<br />
practical advice.<br />
Our organisation is structured as a network<br />
of separate and independent firms, each of<br />
which is a member of PricewaterhouseCoopers<br />
International Limited. PwC member firms operate<br />
locally in countries around the world. By working<br />
together, member firms also comprise a vigorous<br />
global network. This structure provides PwC firms<br />
with the flexibility to operate simultaneously as<br />
the most local and the most global of businesses.<br />
As a direct result, we are able to serve a broad range<br />
of clients: large, publicly-listed multinationals;<br />
small, private, domestic companies; and almost<br />
everything in between.<br />
PricewaterhouseCoopers recognizes the<br />
importance of <strong>China</strong>, both as a huge domestic<br />
market, as well as its impact in today’s global<br />
market. PwC is the leading professional services<br />
firm in <strong>China</strong>, with 12 offices and over 9,000<br />
specialists to cover this complex territory. Our<br />
largest offices in <strong>China</strong> are located in Beijing,<br />
<strong>Shang</strong>hai and Hong Kong.<br />
In order to leverage our global skills and<br />
knowledge, PwC has established a pan-<br />
European <strong>China</strong> <strong>Business</strong> Group to provide<br />
territories with the most up-to-date, industryspecific<br />
knowledge related to their clients’ <strong>China</strong><br />
activities. The Group focuses specifically on<br />
<strong>China</strong>-related business issues and aims to serve<br />
both European companies seeking advice on<br />
how to best structure and approach the <strong>China</strong><br />
market, as well as to provide support to Chinese<br />
companies looking to expand their business<br />
activities in Europe.<br />
www.pwc.com<br />
The <strong>China</strong> <strong>Business</strong> Group works closely with<br />
the <strong>China</strong> <strong>Business</strong> Group of each individual<br />
European territory, as well as with the European<br />
<strong>Business</strong> Group established by PwC <strong>China</strong>. The<br />
latter mentioned acts as a counterpart to the<br />
European <strong>China</strong> <strong>Business</strong> Group. Together, our<br />
group of specialists is able to provide our clients<br />
with the advice they need to pursue a sound<br />
strategy in <strong>China</strong>.<br />
Please contact your local <strong>China</strong> <strong>Business</strong> Group<br />
for more information.
CBO Partners<br />
ADVISORy PARTNER<br />
Banque Privée Edmond de Rothschild S.A.,<br />
Geneva<br />
True to the Rothschild family tradition anchored<br />
in a banking dynasty two and a half centuries<br />
old, our main Group headquarters is located in<br />
Geneva, global capital of private banking.<br />
Banque Privée Edmond de Rothschild S.A. is<br />
focused entirely on our core business of wealth<br />
management for private and institutional clients.<br />
We have no commercial or investment banking<br />
operations and can thus provide our finely honed<br />
services with no underlying conflicts of interest.<br />
This renders our specialist advice all the more<br />
objective, in traditional as well as alternative<br />
asset management.<br />
Vacheron Constantin, the oldest watch-making<br />
Manufacture in the world, celebrates more<br />
than 250 years’ continuous operation since its<br />
foundation in 1755. Throughout its history,<br />
Vacheron Constantin has continued to perfect its<br />
art through its astounding creations.<br />
year after year, Vacheron Constantin has<br />
continued to build its reputation founded on<br />
its know-how<br />
PUBLICITÉ<br />
and its<br />
/ ADVERTISING<br />
sense of technical<br />
2004<br />
and<br />
aesthetic innovation. At Vacheron Constantin the<br />
CD N° 8<br />
search for excellence is a state of mind, a dynamic<br />
to which each step in the process is geared from<br />
design to finishing.<br />
Where excellence in watchmaking is concerned,<br />
www.bper.ch<br />
Our Bank has over 35 years’ experience with<br />
hedge fund strategies. Personalised service,<br />
customised management, close attention to the<br />
individual needs of each client and sensible use<br />
of state-of-the-art investment techniques–these<br />
are the ingredients of a highly successful formula<br />
that has driven our double-digit growth in assets<br />
under management..<br />
At 30 June 2007 client funds totalled CHF 97.2<br />
billion, up 17% year on year. The number of<br />
employees has also been rising constantly and<br />
reached 544 at mid-2007.<br />
www.vacheron-constantin.com<br />
the challenge is to make the material meet the<br />
requirements of accuracy and precision, which<br />
guarantee exceptional quality and thereby also<br />
the product’s timelessness and durability. Highprecision<br />
mechanics is guided by the quest of the<br />
best. Even the design of the watch is developed<br />
using creativity.<br />
Creativity is supported at various levels within the<br />
Manufacture. In production this attitude allows<br />
Vacheron Constantin to make successful technical<br />
innovations, to manufacture movements with<br />
multiple complications. This stimulation gives<br />
birth to the aesthetic innovations and ensures<br />
them a position among the avant-garde.
CBO Partners<br />
ADVISORy PARTNER<br />
The Geneva Financial Center is the trade<br />
association of the Geneva financial community,<br />
of which it defends and promotes the interests.<br />
Geneva, one of the top ten global financial<br />
centers, is widely recognized to be the benchmark<br />
in private banking; it is also the world leader in<br />
the commodities trade finance.<br />
Thanks to its 140 banks (of which 95 are foreignowned),<br />
650 independent asset managers,<br />
SUPPORTING PARTNER<br />
Zurich Financial Services Group (Zurich) is an<br />
insurance-based financial services provider<br />
with a global network of subsidiaries and offices<br />
in North America and Europe as well as in Asia<br />
Pacific, Latin America and other markets. Zurich<br />
is the first Continental European insurer to set up<br />
representative offices in Mainland <strong>China</strong>. In 2000,<br />
Zurich gained a foothold in the Chinese market<br />
through its strategic investment in New <strong>China</strong><br />
Life Insurance Company Ltd.<br />
Geneva Financial Center<br />
Boulevard du Théâtre 4 - PO Box 5322<br />
1211 Geneva 11<br />
Tel. + 41 (0)22 849 19 19<br />
Fax. + 41 (0)22 849 19 20<br />
info@geneva-finance.ch<br />
www.geneva-finance.com<br />
2’600 financial companies, 350 law firms, 1’100<br />
accounting firms, 650 insurance companies, and<br />
overall 34’000 employees, Geneva provides the<br />
full range of financial services, thanks to its long<br />
experience in the banking industry, and the highlevel<br />
expertise of its personnel<br />
www.zurich.com www.abb.com<br />
ABB is a leader in power and automation<br />
technologies that enable utility and industry<br />
customers to improve performance while<br />
lowering environmental impact. Sustainability is<br />
integral to all aspects of our business. We strive<br />
to balance economic, environmental and social<br />
objectives and integrate them into our daily<br />
business decisions. Technology plays a key role<br />
for ABB. The ABB Group of companies operates<br />
in around 100 countries and employs more than<br />
110,000 people.
<strong>Shang</strong>-<strong>Dao</strong> is a non-profit association,<br />
based in Switzerland. Its goal is<br />
to promote business and cultural<br />
exchange between <strong>China</strong> and Europe<br />
by creating networks, organizing<br />
conferences, trade fairs, business clubs,<br />
and other activities focusing on <strong>China</strong><br />
and Chinese business.<br />
Tel.: +41 22 301 66 88<br />
Fax: +41 22 301 55 88<br />
Email: info@shang-dao.com